LONDON, Oct 17 (Reuters) - Euro zone bond yields rose

slightly on Thursday, after falling for two consecutive

sessions, as markets waited for a European Central Bank decision

later in the day.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, rose 2.7 basis points (bps) to 2.203% after

falling 10 bps over the previous two days.

The ECB is widely expected to lower interest rates by 25

basis points to 3.25% when it announces its decision at 1215 GMT

(1415 CET). Traders will be listening out for hints about

whether the market's expectation that rates will continue to

fall at consecutive meetings is close to the mark.

Germany's two-year bond yield, which is sensitive

to ECB rate expectations, rose 1.6 bps to 2.181%. It fell 9 bps

across Tuesday and Wednesday.

Italy's 10-year yield was higher by 1.9 basis

points​ at 3.424%, and the gap between Italian and German yields

held steady at 121 bps, its lowest level since

March.